| dc.description.abstract | With the current evolutions in financial markets, it has now become ever more necessary
for consumers to be more knowledgeable and proficient in managing their finances.
This can be realized through addressing their financial literacy levels. The objectives
of the study, was to examine the relationship between financial literacy and individual
savings of Postal Corporation of Kenya employees. The study used primary data
collected from semi-structured questionnaires. Quantitative data was analyzed using
descriptive statistics while qualitative data was analyzed using content analysis.
Statistical Packages for Social Scientists (SPSS Version 17.0) was used. The study
also used multiple regression analysis to establish the relationship between financial
literacy and individual savings. The study findings concluded that financial literacy
impacts to a great extent on individual savings. Other factors in the study that were found
to contribute significantly to individual savings were education, income, risk tolerance
and saving regularity. Gender and age were found to have insignificant effect on
individual savings. From the research findings, the study has determined that financial
literacy to be a very key variable in increasing the individual savings. It is recommended
that the government should devise policies that address financial literacy training
programs on individual savings for employees. The study recommends having the
number and variety of financial literacy training programs and program providers
appointed who will offer comprehensive training on individual savings such as Sacco
and bank savings, insurance plans, pension plan and general personal finance. The study
further recommends that employers should ensure that their employees are exposed to
financial literacy training as per government set policies and that they should come up
with strategies that ensure proper imparting of financial education and adherence of
employees to savings regularity which has been found to have a positive relationship with
individual savings. It is recommended that a study be carried out on other factors that
affect individual savings, specifically, a study on relationship between behavioral
factors and individual savings from across the country should be carried out in order to
pick out other variables not covered in this study. The research should also be done in
other organizations and the results compared so as to ascertain whether there is
consistency on effect of financial literacy on individual savings among respondents in
the various organizations. Since this study concentrated on employed people, further
study should be done on self employed population, in order to find out whether the same
result can be replicated with self employed population. | en_US |
